Case Law Details
Kay Pan Sugandh Pvt. Ltd. Vs Director General of GST Intelligence (Chhattisgarh High Court)
Petitioner is engaged in the business of manufacturing of pan masala of various brand names and retail sale price. From the pleadings made in writ petition, it is clear that petitioner got installed different PMPMs of different MRPs at its factory premises. Main grievance raised by learned Senior Counsel for petitioner is with respect to jurisdiction of authority issuing impugned show-cause notice to petitioner. Perusal of impugned show-cause notice would show that detailed investigation has been conducted by respondent before issuing show-cause notice to petitioner. Investigation was conducted based on intelligence information. In show-cause notice, there is specific mention about difference in speed of PMPM; giving wrong information in report of Chartered Engineer regarding number of funnels in PMPM than that of number of funnels as per report of manufacturer of machines. As per explanation offered by manufacturer of FFS Rotary Pouch Packing Machine, password for enhancing speed of PMPM is also provided to manufacturer of pan masala i.e. petitioner, and thus petitioner is well aware of the fact that PMPM can be operated at a higher speed than the speed declared by petitioner. Reasons assigned in show-cause notice are factual and based on evaluating scientific method. In impugned show-cause notice there is prima facie material which warrant explanation from petitioner as to why proposed excise duty should not be charged with penalty.
In case of Oryx Fisheries Pvt. Ltd. vs. UOI reported in 2011 (266) E.L.T. 422 (SC), it was observed as under:-
“28. It is no doubt true that at the stage of show cause, the person proceeded against must be told the charges against him so that he can take his defence and prove his innocence. It is obvious that at that stage the authority issuing the charge- sheet, cannot, instead of telling him the charges, confront him with definite conclusion of his alleged guilt. If that is done, as has been done in this instant case, the entire proceeding initiated by the show cause notice gets vitiated by unfairness and bias and the subsequent proceeding become an idle ceremony.”
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